Name

Definition

Implication

MODY

The difference between the natural logarithm of this year’s closing price and the natural logarithm of last year’s closing price.

The variable to measure the annual return of per stock in the market.

MODX

The difference between this year earnings per share (EPS) and last year’s earnings per share (EPS).

The variable to measure the annual return of per stock in book value.

SIZE

Natural logarithm of total assets.

To control the influence brought by the size of the company.

LEVRATIO

The asset-liability ratio.

To control the debt/asset structure of a company.

IDXYRRET

The return of Shanghai A Share Index of that year.

To control the influence by the whole market.

INDUSTRY

Types of industries sorted by CSRC of 2012, financial industry is excluded due to the capital structural difference.

To control the influence generated by the differences between different industries.